The Connecticut Housing Finance Authority (CHFA) has reserved $9.6 million in federal 9% low-income housing tax credits (LIHTCs) to seven affordable housing developments. The tax credits are estimated to generate more than $90 million in equity from private investors for the projects.
The developments receiving LIHTC awards will create or rehabilitate 370 rental units, 320 designated as affordable and 50 as market rate. The seven developments include five in the new construction classification: 80 South Road in Farmington, Village at Park River VI A and Village at Park River VI B in Hartford, West Ridge in New Haven, and 85 Tremont in Meriden.
Two additional developments are in the preservation classification, which is designed to preserve existing affordable housing stock. They include Armstrong Court Phase 4 in Greenwich and Oak Park Phase 1 in Stamford.
“The LIHTC program continues to be one of our greatest tools to combat the affordable housing shortage in our state,” said Nandini Natarajan, CHFA’s CEO and executive director. “The board’s approval of these awards today brings us closer to narrowing the gap in supply by providing hundreds of new affordable places to live for Connecticut families.”
Four of the awardees provide supportive housing for clients of the Department of Developmental Services, and one provides supportive housing to persons experiencing homelessness. In addition to serving their communities, each of the new construction developments received recognition for their energy conservation measures with three receiving high marks for their Green Building Design.
This year, CHFA received 18 applications requesting a total of more than $24.5 million in credits.In addition to the federal tax credits, the state Department of Housing is committing more than $30 million to the 2023 LIHTC award recipients.
Trinity Financial’s 85 Tremont Street development in Meriden is among the projects receiving LIHTCs this year.
It will feature 55 one- and two-bedroom units and will include the adaptive reuse of the historic Aeolian Co. building that was constructed between 1887 and 1920. A second portion of the development, which will be financed separately but constructed simultaneously, will contain 27 additional mixed-income units for a total of 82 apartments.
Eleven of the 55 units will be part of the federal Section 811 program and reserved for households earning at or below 25% of the area median income (AMI). Three units will be for households earning at or below 30% of the AMI, and 22 units will be for households earning at or below 50% of the AMI. An additional eight units will be reserved for households earning at or below 80% of the AMI. The remaining eleven units will be unrestricted, market-rate apartments.
The 85 Tremont Street complex was originally home to the Aeolian Co. from the late 1800s through 1930 and was the firm's first purpose-built facility. Aeolian was an internationally renowned manufacturer of automatic musical instruments, primarily organs and player pianos, and the music rolls that they used to play different tunes. The company rose to become the dominant producer of self-playing musical instruments in the early 1900s until the advent of the record player decimated the industry. At its height, Aeolian operated seven factories and many branches in the United States, Europe, and Australia.
Trinity Financial has been awarded $1.32 million in federal 9% LIHTCs, which equates to approximately $13.2 million over the funding program’s 10-year credit period.
“We are grateful that CHFA has included our Meriden project in this series of LIHTC awards,” said Dan Drazen, vice president, development, at Trinity Financial. “By repurposing a historic asset, this development will breathe new life into an underutilized building, remediate a contaminated brownfields site, create more affordable housing for individuals and families at several income levels, and provide easy access to public transit.”
The other developments receiving LIHTC reservations are:
· 80 South Road in Farmington, $1.6 million in tax credits: Developed by Sager Development, 80 South Road is located in a very high opportunity area on the Connecticut Opportunity Map, where less than 10% of the existing housing stock is affordable. Fifteen of the 65 units will be designated as supportive housing serving clients of the state Department of Developmental Services. The development consists of eight studio, 18 one-, and 39 two-bedroom units. Fifty-two of the units will be affordable to households earning at or below 80% of the AMI, while the remaining 13 units will be market rate. The development will be located near bus stops, the University of Connecticut Health Center, and several restaurants and shopping centers.
· Armstrong Court Phase 4 in Greenwich, $1.4 million in tax credits: Developed by the Housing Authority of the Town of Greenwich, this is the fourth phase of the redevelopment of Armstrong Court, a 144-unit family development located in a recognized high opportunity area. This phase consists of the renovation of 36 two- and 12 three-bedroom units. All 48 units will be affordable to households earning at or below 60% of the AMI. The Housing Authority of the Town of Greenwich has committed project-based Housing Choice Vouchers for 15 units. A pre-K day care center is also on site. The site is served by daily bus service.
· Village at Park River, Phase VI-A, in Hartford, $840,000 in tax credits, and Village at Park River, Phase VI-B, $1,050,000 in tax credits: Developed by Pennrose, the Village at Park River Phase VI represents the ongoing redevelopment of the former Westbrook Village public housing development in the Blue Hills neighborhood of Hartford. The two phases will produce a combined 76 one- and two- bedroom units. Sixty-three units will be restricted to households earning at or below 60% of the AMI; the remaining 13 units will be market rate. Both phases are designed to meet rigorous National Green Building and Energy Star sustainability standards.
· West Ridge Apartments in New Haven, $1.6 million in tax credits: Developed by Queach Corp., West Ridge Apartments will provide apartments for elderly and/or young disabled (18 years and older) households. The mixed-use aspect of the building is envisioned to include a commercial gallery/studio space. Fourteen units will be supportive housing for intellectually disabled clients of the state Department of Developmental Services. An additional 38 units will receive project-based Section 8 rental subsidies. The development will include 62 one-, two two-, and one three-bedroom units, a community room, and an on-site laundry room.
· Oak Park Phase 1 in Stamford, $1.8 million in tax credits: Developed by Rippowam Corp., an affiliated entity of Charter Oak Communities, this is the first phase of a proposed three-phase redevelopment of Oak Park, which was built in the 1940s under the state Moderate Rental Program. All units will be affordable to households earning at or below 60% of the AMI. Nineteen project-based vouchers will support very low-income residents (those earning at or below 25% of the AMI). The 60 existing units will be replaced with 61 units contained in seven townhouse buildings and one multifamily elevator building. The buildings are designed with a high-efficiency envelope with Energy Star windows and doors.